DOW Gears Up for Q2 Earnings: What's in the Cards for the Stock?

Core Viewpoint - Dow Inc. (DOW) is expected to report second-quarter 2025 results on July 24, with anticipated challenges from weak demand and pricing pressures despite productivity initiatives [1][6]. Revenue Estimates - The Zacks Consensus Estimate for DOW's revenues in the upcoming quarter is $10,445.6 million, indicating a year-over-year decline of 4.6% [4]. - Revenue estimates for specific segments include: - Packaging & Specialty Plastics: $5,197.9 million, a decline of 5.8% year over year [4]. - Industrial Intermediates & Infrastructure: $2,884.6 million, a decline of 2.3% year over year [4]. - Performance Materials & Coatings: $2,142.1 million, a decline of 4.5% year over year [7]. Factors Affecting Performance - DOW is facing headwinds from soft demand in Europe and China, with lower consumer spending and weak construction and manufacturing activities impacting performance [8][9]. - Inflationary pressures are affecting demand in consumer durables and construction, while automotive demand in Europe is also weak [9]. - The Performance Materials & Coatings segment is challenged by weak siloxane prices due to increased supply in Asia, particularly from China [10]. Cost-Saving Initiatives - DOW is implementing cost-saving measures aimed at reducing direct and labor costs, targeting $1 billion in savings to improve margins [11]. - The company expects to realize around $300 million in benefits from these actions in 2025, with full benefits anticipated by 2026 [11]. Earnings Prediction - The Earnings ESP for DOW is -53.04%, indicating a low likelihood of an earnings beat this quarter, with a consensus estimate of a loss of 8 cents [12][13]. - DOW currently holds a Zacks Rank of 5 (Strong Sell) [13].